Indonesia's Business Activity Improves in Q1 2022

Bank Indonesia (BI)'s survey reports that business activity improved in the first quarter of 2022. This is reflected in the Weighted Net Balance (WNB) value of 8.71%, higher than 7.1% in the fourth quarter of 2021.

The central bank notes that the improvement in business activity is indicated in several sectors. The WNB value for the agriculture, plantation, livestock, forestry, and fisheries sector increased to 2.4%, particularly the food crop sub-sector (including horticulture). This is in line with the historical harvest season pattern and government policies to boost the planting index.

Another sector that recorded an increase is the manufacturing industry with a WNB of 0.84%. This is in line with the increasing demand, accompanied by increased mobility due to the declining number of Covid-19 cases.

This also affected industrial activity, as well as finance, real estate, and corporate services, which increased with a WNB value of 2.08%.

On the other hand, some sectors slowed slightly, including the trade, hotel, and restaurant sector with a WNB of 1.21% and mining and quarrying at 0.71%.

In the second quarter of 2022, respondents expect business activity to continue its upward trend with a WNB of 23.24%.

The increase is driven by the performance of the mining and quarrying sector, supported by weather factors. Furthermore, the manufacturing industry and the trade, hotel, and restaurant sectors are driven by easing mobility restrictions and Idul Fitri, thus boosting demand and improving estimated storage capacity.